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With so many customer service outsourcing companies out there, finding the best match for your needs can be challenging. You know you need external support to answer queries and resolve issues on your behalf so you can focus on your core operations, but you need to figure out which customer service outsourcing company satisfies your needs the best. In this article, I’ll help you make this choice easier by sharing my insights on the best options for outsourced customer support to help you find the best outsourcing partner for you. 

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We’ve been testing and reviewing customer service companies since 2021. As CX professionals ourselves, we know how critical and difficult it is to make the right decision when selecting outsourcing companies.

We invest in deep research to help our audience make better purchasing decisions. We’ve tested more than 2,000 tools for different customer experience use cases and written over 1,000 comprehensive software reviews. Learn how we stay transparent & our software review methodology.

The Best Customer Service Outsourcing Companies Comparison Chart

This comparison chart summarizes basic details about each of my top customer service outsourcing solutions side-by-side to help you find the best service provider for your budget and business needs.

Tools Price
RPM BPO Pricing Upon request
PartnerHero From $10/hour
Influx Pricing upon request
WOW24-7 $990/month w/ 40 hrs/week agent
HelpSquad BPO From $185/month
Integra From $7.95/hour
Skycom Pricing upon request
Wing From $499/month
Upwork Pricing upon request
MicroSourcing Pricing upon request
Preview Image - <h2 class="c-block__title b-summary-table__title c-listicle__title h3" > Compare Software Specs Side by Side</h2>

Compare Software Specs Side by Side

Use our comparison chart to review and evaluate software specs side-by-side.

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How To Choose Customer Service Outsourcing Companies

Choosing the right customer service outsourcing company can enhance your customer service offering by being an extension of your brand's commitment to customer satisfaction.

As you're shortlisting, trialing, and selecting customer service outsourcing companies consider the following:

  • What problem are you trying to solve - Start by identifying the customer service gap you're trying to fill to clarify the features and functionality the customer service outsourcing companies needs to provide.
  • Who will need to use it To evaluate cost and requirements, consider who'll be using the customer service outsourcing company and how extensive the partnership will need to be. It's crucial to assess whether it's solely for the customer service teams or if broader organizational integration is necessary, guiding your decision on whether to prioritize simplicity for widespread adoption or efficiency for your customer service outsourcing company power users.
  • What other tools it needs to work with Clarify what tools you're replacing, what tools are staying, and the tools you'll need to integrate with, such as accounting, CRM or HR software. You'll need to decide if the tools will need to integrate together, or alternatively, if you can replace multiple tools with one consolidated customer service outsourcing companies.
  • What outcomes are important - Consider the result that the software needs to deliver to be considered a success. Consider what capability you want to gain, or what you want to improve, and how you will be measuring success. For example, an outcome could be the ability to get greater visibility into performance. You could compare customer service outsourcing companies features until you’re blue in the face but if you aren’t thinking about the outcomes you want to drive, you could be wasting a lot of valuable time.
  • How it would work within your organization - Consider the software selection alongside your workflows and delivery methodology. Evaluate what's working well, and the areas that are causing issues that need to be addressed. Remember every business is different — don’t assume that because a tool is popular that it'll work in your organization.

Best Customer Service Outsourcing Companies Reviews

Here’s a brief description of each customer service outsourcing company that explains the key services each service provider offers.

Best nearshore CX company for English fluency and Spanish

  • Pricing Upon request
Visit Website
Rating: 5/5

Headquartered in Silicon Valley with offices in Latin America, RPM BPO provides nearshore customer service outsourcing and other business process outsourcing (BPO) solutions, such as sales and back-office support. The 3 main advantages of RPM BPO are: high-quality service standards, high English proficiency, and cultural alignment with the US and Canada. This is great for companies who work in North America or have customers there as their team can interact naturally in the same time zone with your people.

RPM BPO focuses on in-depth training programs and leverages the latest technology tools to ensure maximum efficiency and quality assurance. This means they are great for both simple customer service needs as well as customer interactions that involve complex processes or product knowledge.

Best for customer retention through quality service

  • Free consultation available
  • From $10/hour

PartnerHero provides customer support teams that are fully aligned with your brand. Each team is custom-built to match the client’s culture and business needs. Service is offered 24 hours a day, 365 days a year, with onshore, nearshore, and offshore options available.

Agents provide support by SMS, email, phone, and chat. Technical specialists are available to help with matters such as regression and snapshot testing, refactor tests, and black-box testing. Other services such as acceptance and localization testing can also be arranged.

PartnerHero costs from $10/hour.

Best for customer service that matches your brand voice

  • Pricing upon request
Visit Website
Rating: 4.4/5

Influx is a customer service operation that expands organically as your business scales. Issues are resolved quickly across multiple channels, including email, chat support, social media, and voice. Trained customer service professionals can be dedicated to managing specific channels as required.

The company provides onshore and offshore agent options, both pre-trained for customer interaction. Companies can start with the basic service, then expand into multichannel, proactive onboarding and insights.

Three levels of customer service management ensure that nothing slips through the cracks.

Influx costs from $999/month for 8 hours a day, 7 days a week customer service support for your business.

Best boutique BPO that feels like your own in-house team

  • $990/month w/ 40 hrs/week agent
Visit Website
Rating: 5/5

WOW24-7 is a customer services outsourcing company that provides 24/7 (incl. after-hours, weekends & holidays) customer and tech support to US and European-based SaaS, IoT, Retail, and Travel companies—and they offer coverage in 10+ languages. They handle everything from answering customer queries and managing complaints to providing technical support. It's like having a full-fledged in-house customer service department without the overheads.

It helps Customer & Technical Support Executives forget about CSRs & Team Leads hiring, onboarding, training & inconsistent CSAT. What sets WOW24-7 apart from other customer service outsourcing companies is their commitment to providing personalized service. They take the time to understand your business processes, software, data security standards, and, most importantly, your customers and then tailor their services accordingly. This means that your customers get the kind of service they expect, which in turn leads to higher customer satisfaction and loyalty.

Best for a broad range of services including back-office support

  • 14-day free trial
  • From $185/month
Visit Website
Rating: 5/5

HelpSquad BPO is a customer service outsourcing company that provides a variety of services, including live chat outsourcing, virtual assistants, virtual receptionists, and business process outsourcing services. Services are offered 24/7, ensuring timely responses to customer requests. The global team of support agents are carefully selected and trained to be exceptional at providing helpful and contextual support on behalf of your brand.

The team uses AI to organize and index data, allowing their agents to quickly respond to customer questions. They have developed their own AI-driven omnichannel contact center software, providing both the services and technology needed to manage your customer support needs. Specific features include customizable web chat, two-way SMS texting, Facebook Messenger integration, intelligent chatbots, lead capture and notifications, intelligent overflow, and contact center analytics.

The company also provides back-office support services, including virtual assistants, order processing, research, data entry, and accounting support. So beyond providing great customer service to your clientele, they can also manage behind-the-scenes services to support building a better customer experience.

Paid plans start from $185 per month, and a 14-day free trial is available.

Best for professionals trained in customer psychology

  • From $7.95/hour

Integra takes a science-based approach to customer care. Agents are trained in customer psychology to increase levels of customer satisfaction and turn customers into brand ambassadors.The company offers support by phone, email, and live chat.

In addition, qualified and certified technical experts are on hand to assist with more challenging customer queries and issues. Integra handles both pre-sales and post-sales support, together with order taking, shipping tracking, upgrades, and cancellations.

Any customer service agent can also arrange refunds, schedule appointments, and conduct surveys.

Integra cots from $7.95/hour.

Best for multi-continent operations

  • Pricing upon request

Skycom is an experience call center provider based in Florida, USA. Operations across Latin America and the Philippines allow the company to provide truly multi-continental assistance. Skycom staff may be based in a conventional call center or work from home.

This flexibility allows the company to provide optimal service and exceed customer expectations for each client.The company boasts PCI, SOC 1-2, and HIPAA certifications, allowing it to work with the broadest possible range of organizations. It also uses AI to enhance its customer service operations.

Skycom offers free consulting, plus a fast ramp-up with no licensing or setup fees.

Skycom offers customized pricing upon request.

Best for individual customer service assistants

  • From $499/month

Wing Virtual Assistant provides small business operations with the ability to outsource non-core tasks. Assistants can take on tasks such as web research, managing expenses, and scheduling appointments. They can also handle sourcing, CRM tools, or internal support. Clients pay a fixed monthly price for a dedicated virtual assistant.

Each assistant can serve in several roles and help the business in multiple ways.

The Wing Assistant system allows you to define roles using a simple drag-and-drop user interface.

Wing costs from $499/month.

Best for a freelance customer service solution

  • Pricing upon request

Upwork is a platform that connects businesses with freelance talent. It can be a great place to hire customer service and technical support assistants directly without paying the overheads associated with larger outsourcing companies. However, you can also hire entire teams from customer support firms.

To get started, you can post your requirements, detailing exactly what you are looking for. Then you can evaluate the applications and shortlist your preferred candidates.

Upwork includes a full range of features, such as chat scheduling, feedback sharing, global payments, and needs analysis.

Upwork pricing depends on the independent freelancer rates.

Best for Philippines-based customer service teams

  • Pricing upon request

Microsourcing is one of the largest outsourcing companies in the Philippines, dedicated to helping you deliver excellent customer service. You save up to 70% in costs but retain complete control over KPIs, quality, workflow, and productivity. Support is available 24/365 with a robust infrastructure to ensure maximum uptime.

The company has risk management and disaster recovery plans to keep your team safe whatever happens. The office facilities are fully maintained, so you never need to worry about furniture, tech equipment, or maintenance.

Microsourcing offers customized pricing upon request.

Other Outsourcing Solutions

Here are a few more worthwhile outsourcing partners that didn’t make it into the top 10 list:

If you still haven't found what you're looking for here, check out these related customer experience management tools that we've tested and evaluated.

Selection Criteria For Customer Service Outsourcing Companies

Selecting customer service outsourcing companies involves a comprehensive review of their functionality and how well they meet specific use cases crucial to your business needs. Common offers from customer service outsourcing companies typically include multichannel support, 24/7 availability, language support, scalability, data security, advanced technology utilization, performance metrics and reporting, industry experience, cultural fit, and trained staff. My selection process is grounded in hands-on trials and extensive research into these solutions.

To be considered for inclusion on my list of the best customer service outsourcing companies, the solution had to support the ability to fulfill common use cases:

  • Core Customer Service Outsourcing Companies Functionality: 25% of total weighting score
    • Multichannel support ensures no customer query goes unanswered.
    • Round-the-clock availability caters to global customer bases across time zones.
    • Language support breaks down barriers for a diverse customer demographic.
    • The scalability of services allows businesses to adjust to demand fluctuations.
    • Advanced technology adoption, including AI and CRM integration, enhances customer interactions.
    • Strong data security practices ensure customer information is protected.
    • Performance analytics enable continuous service improvement.
    • Industry-specific experience provides relevant and efficient customer support.
    • Cultural alignment ensures the outsourcing company represents your brand accurately.
    • A well-trained staff guarantees knowledgeable and empathetic customer interactions.
  • Additional Standout Features: 25% of total weighting score
    • Innovative uses of technology, like augmented reality for complex support scenarios.
    • Customized reporting tools for deeper insights into customer satisfaction and support efficiency.
    • Personalization techniques driven by data analytics for a tailored customer experience.
    • Leveraging augmented reality for support, or employing deep data analytics for personalized service, demonstrate functionality that goes beyond the generic offerings.
  • Usability: 10% of total weighting score
    • Intuitive dashboard design allows for easy navigation and management of customer inquiries.
    • Simplified integration processes with existing business systems ensure a seamless transition and operation.
  • Onboarding: 10% of total weighting score
    • Comprehensive training resources, such as videos and webinars, facilitate a smooth adoption process.
    • Interactive product tours and chatbots offer immediate assistance to new users.
  • Customer Support: 10% of total weighting score
    • Availability of multiple support channels, ensuring help is readily accessible.
    • Quick response times to inquiries highlight the company's commitment to their client's success.
  • Value For Money: 10% of total weighting score
    • Competitive pricing structures that reflect the breadth and quality of features offered.
    • Transparent billing practices ensure there are no hidden costs.
  • Customer Reviews: 10% of total weighting score
    • Positive feedback on customer support responsiveness and problem resolution efficiency.
    • High ratings for user interface design and overall usability, indicating a positive user experience.

In reviewing customer service outsourcing companies, I evaluate how these features and functionalities address the real-world needs and pain points of businesses seeking to enhance their customer support. The right company not only fits your budget but scales with your growth, ensuring a partnership that continually adds value to your customer service efforts.

In 2024, the customer service outsourcing landscape is not just evolving; it's undergoing a transformation, driven by technological innovation and changing market demands. With the contact center outsourcing market expected to grow significantly, from USD 100.93 billion in 2023 to USD 132.92 billion by 2028, it's clear that businesses are increasingly relying on outsourcing providers to enhance their customer service capabilities. Here’s how this growth and these advancements are shaping the industry:

  • Expanding Use of Artificial Intelligence (AI) and Machine Learning: The industry is witnessing an exponential increase in AI and machine learning applications. These technologies are becoming more sophisticated, capable of understanding and predicting customer needs more accurately, leading to more efficient issue resolution and a seamless customer experience. This trend is in line with forecasts predicting the use of AI and data analytics by more providers to offer specialized solutions.
  • Growth of Omnichannel Support: Omnichannel support continues to evolve rapidly, reflecting the need to engage customers across various platforms seamlessly. This ensures that customers have a consistent and integrated experience, whether they're reaching out via email, social media, chat, or voice calls.
  • Introduction of Augmented Reality (AR) in Customer Support: Augmented Reality (AR) is emerging as a novel feature in customer support, offering real-time, visual assistance for complex issues. This innovative approach enhances problem-solving and is a testament to the industry's move towards more interactive and immersive service solutions.
  • Enhanced Focus on Personalization and Customer Insights: There's a significant demand for features that provide deeper personalization and customer insights. Leveraging data analytics for tailored customer experiences and proactive service reflects a broader industry shift towards more predictive and personalized service models.
  • Decreasing Reliance on Traditional Call Centers: The demand for traditional call center services is diminishing, with a clear preference for digital and self-service options among businesses and customers. This trend highlights the shift towards more autonomous and flexible service channels, offering customers the convenience and efficiency they seek.
  • Rising Importance of Data Security: With the increase in outsourcing, data security has become a critical concern, especially for industries dealing with sensitive information like finance and healthcare. The emphasis on data security and compliance, such as GDPR for European organizations, indicates a crucial consideration in selecting outsourcing providers, particularly for businesses in sectors where data privacy is paramount.

These trends highlight a dynamic shift towards leveraging technology to deliver more efficient, personalized, and secure customer service solutions. As the industry grows, businesses are looking for outsourcing partners who not only offer cutting-edge solutions today but are also poised to evolve with the changing landscape, ensuring they can meet customer needs now and in the future.

What are Customer Service Outsourcing Companies?

Customer service outsourcing companies are third-party service providers that specialize in customer service operations across multiple channels (phone, email, and chat). They'll tackle your customer's issues on your behalf, providing seamless service to your customers while your internal staff can focus on bigger-picture tasks.

Using a customer service outsourcing company offers numerous benefits, including cost savings compared to in-house support teams, the ability to handle high call volumes or offer 24-hour customer service, and the flexibility to adapt to your changing business needs. The exact details of your outsourcing arrangement would be specified in a service level agreement (SLA).

Features of Customer Service Outsourcing Companies

When considering outsourcing customer service, the choice of partner is pivotal. This company acts as your business's frontline, addressing customer interactions on your behalf. It's essential they deliver seamless service, enabling your internal team to concentrate on strategic tasks while they handle daily customer inquiries and issues. Integrating the additional insights provided, here are the refined features to look for in a customer service outsourcing company:

  1. 24/7 Availability: Offering round-the-clock support ensures that customers receive help whenever they need it, irrespective of time zones, enhancing customer satisfaction significantly.
  2. Fast Response Times: Rapid replies to customer inquiries are crucial for ensuring maximum satisfaction, keeping customers engaged and reducing frustration.
  3. Multichannel Support: Engaging with customers through social media, email, SMS, calls, and chat support caters to their preferred communication channels, ensuring no query goes unanswered.
  4. Trained Staff: Specialists trained in both the technical aspects of your products and the art of customer communication can resolve issues more efficiently and enhance customer experience.
  5. Advanced Technology: Employing dedicated customer service software and technologies, such as AI for initial screening or CRM systems for personalized interactions, streamlines service delivery.
  6. Multilingual Capabilities: Offering support in multiple languages accommodates a global customer base, removing language barriers and improving accessibility.
  7. Scalability: The capacity to adjust resources based on demand ensures efficient service during peak times without compromising on quality or incurring unnecessary costs during slower periods.
  8. Data Security and Privacy Compliance: High-level protection of customer data and adherence to local and international regulations are non-negotiable for maintaining trust and legal compliance.
  9. Performance Metrics and Reporting: Detailed reporting on key performance indicators and service level agreements allows for transparent monitoring of service quality and areas for improvement.
  10. Industry Experience: Companies with a background in your specific industry possess a deeper understanding of your products and customer expectations, leading to more effective customer service.
  11. Cultural Fit: An outsourcing partner that aligns with your company’s values and customer service philosophy acts as a seamless extension of your team, ensuring consistent service quality.

Selecting a customer service outsourcing company that excels in these areas can transform your customer service from a necessary function to a competitive advantage. It not only efficiently resolves customer issues but also significantly enhances their overall experience with your brand, building loyalty and trust. This strategic partnership allows your team to focus on core business goals, driving growth and innovation.

Benefits of Customer Service Outsourcing Companies

As customer service teams, you understand the critical role of exceptional customer support in the success of your business. Outsourcing your customer service can significantly enhance this aspect of your business, providing benefits that directly impact your efficiency, customer satisfaction, and bottom line. Here are five primary benefits of using a customer service outsourcing company:

  1. Cost Efficiency: Outsourcing reduces the need for in-house staff and infrastructure. By leveraging an outsourcing company, you save on recruitment, training, and operational costs, allowing you to allocate resources more effectively elsewhere in your business.
  2. 24/7 Customer Support: Offering round-the-clock service ensures that your customers receive help whenever they need it, regardless of time zones or business hours. This constant availability increases customer satisfaction and can give you a competitive edge.
  3. Scalability: With outsourcing, you can easily scale your customer service operations up or down based on demand. This flexibility allows you to handle peak periods efficiently without the need to hire additional staff, ensuring you maintain high service levels at all times.
  4. Access to Expertise and Advanced Technology: Outsourcing companies specialize in customer service, providing you access to experienced professionals and the latest technologies. This means your customers benefit from high-quality interactions and solutions, enhancing their overall experience with your brand.
  5. Focus on Core Business Functions: By delegating customer service to an external partner, your team can concentrate on core business activities. This focus can lead to improved products and services, driving growth and innovation within your organization.

Leveraging a customer service outsourcing company offers you a pathway to not just maintain but elevate your customer service standards. These benefits manifest in happier customers, reduced costs, and the ability to focus on what you do best. Embrace the advantages that come with outsourcing to transform your customer service into a powerful tool for business success.

Cost & Pricing for Customer Service Outsourcing Companies

When exploring customer service outsourcing for your team, it's essential to understand the various plan options and pricing structures available. These plans are designed to cater to different needs, sizes, and capabilities of businesses, ensuring there's a fit for everyone.

The options range from basic packages suitable for small businesses or startups, to comprehensive solutions for large enterprises requiring extensive support. Below is a breakdown of the typical plan options along with their average pricing and common features. This will help you gauge what might best suit your business's needs.

Plan TypeAverage PriceCommon Features
Basic$500 - $1,000/monthEmail and chat support, business hours only, basic analytics, access to a limited number of support agents
Standard$1,000 - $5,000/monthMultichannel support (email, chat, phone), 24/7 availability, advanced analytics, CRM integration, dedicated support agents
Premium$5,000 - $10,000/monthDedicated account manager, customized support solutions, priority support channels, comprehensive analytics and reporting, unlimited support agents
Enterprise$10,000+ /monthCustomized solutions tailored to business needs, personal consultant, on-site support, advanced security and compliance features, integration with business systems

As you consider these options, think about your current customer service needs and future growth expectations. The right plan not only fits your budget but also scales with your business, ensuring you always deliver exceptional support to your customers.

FAQs About Outsourcing Customer Service

Still have some questions about customer support outsourcing? Here are answers to a few frequently asked questions on the topic:

Why should you outsource customer service?

In today’s world, people have high expectations regarding customer service. But for a growing business, delivering a high level of in-house support can be challenging. To provide quick and high-quality customer service, without massively increasing your overhead as your company expands, you need a dedicated team of customer service representatives. Thankfully, customer service outsourcing companies are a practical and affordable solution that can help you maintain a consistent and personalized customer experience.

The customer outsourcing industry is also growing in popularity. In fact, it’s expected to grow from USD 100.93 billion to USD 132.92 billion from 2023 to 2028. These companies take the problem off your hands, managing increased volumes of customer interaction and taking good care of your customers while you take care of your core business. Plus, many companies offer flexible staffing and resource allocation that can help maintain quality service levels at significantly less cost than expanding your in-house team.

In-house customer service team vs. outsourcing: Which is better?

The decision of whether to outsource customer service is one that every organization needs to make for themselves. There are pros and cons to both outsourced and in-house customer service agents. Let’s take a look:

Some of the benefits of outsourcing your customer service include:

  • Cost savings: A customer service agency or outsourced contact center is usually less expensive compared to building an in-house team.
  • Availability: Many customer service outsourcing companies offer round-the-clock service, whereas a local team may have more restricted hours.
  • Localization: An outsourced team may be able to provide customer service in multiple languages, or specialized support based on location.

On the flip side, here are a few reasons why you might opt for an in-house team:

  • Context: In-house employees have a better overall business context about your products, services, and company values, making for on-brand customer interactions.
  • Customer loyalty: You’ll be able to assign specific customer service agents to specific customers, building better relationships and improving customer retention.
  • Technical support: If your business, products, or services are highly technical or specialized, it might be worth it to train a technical support team.

For example, you might consider a tech startup with a highly specialized software product. They might find outsourcing their customer service cost-effective initially, but as their product complexity increases, the need for detailed, product-specific knowledge might make an in-house team more suitable to ensure accurate technical support and maintain brand consistency. It is important to regularly assess your customer service needs and the complexity of your products or services. If your business evolves to require more specialized support, it may be time to transition from outsourced to in-house customer service management to maintain quality and expertise in customer interactions.

What are the risks of customer service outsourcing?

Opting for an outsourced customer service solution such as a call center service comes with certain risks. But the truth is, any business process outsourcing (BPO) comes with potential risks. For example, a retail company outsourcing its customer service to a call center may find that the agents, while efficient, lack detailed knowledge of their specific product range, leading to less personalized customer care.

With that in mind, here are a few things to consider before you opt for outsourcing:

  • Customer care may be less personalized and specialized.
  • You’ll have less control over quality assurance and training.
  • KPIs like employee retention could be affected.

Overall, when considering outsourcing, try to establish clear communication channels and regularly scheduled meetings with the service provider to discuss quality assurance, training procedures, and adherence to and measurement of KPIs. This helps maintain a level of control and ensures the outsourced services align with your company’s standards and goals.

Why outsource customer service?

Remember, just as there are just possible risks, outsourcing also comes with potential rewards. There are certain situations where providing customer service through an outsourcing solution is actually a great thing for your company.

For example, you might be facing challenges in creating a great customer experience through a staffing shortage. Or, your customer support team might be struggling to keep up with multiple communication channels or an influx of requests.

Either of these scenarios has the potential to create a negative impact on retention, satisfaction, and customer loyalty. And in those cases, opting to outsource can be the best way to deliver top customer service.

Another factor that’s worth considering is your tech stack. Customer service teams tend to rely on multiple apps and SaaS tools, including CRM software, help desk software, customer onboarding software, virtual assistants, AI chatbots, and more!

The cost of these tools adds up quickly, and setting up (or building) integrations to keep data and records up-to-date across all these sources becomes cumbersome, quickly. By outsourcing your customer service team, you can lighten up your tech stack and eliminate the headaches that come with maintaining it.

Try regularly evaluating the efficiency and effectiveness of your internal customer service processes and technology stack. If you find that the cost and complexity of maintaining these systems are outweighing the benefits, consider outsourcing as a strategic move to streamline operations and improve customer service quality.

How can you measure the ROI of outsourcing customer services?

The simple way to measure the return on investment (ROI) of outsourcing customer services is to compare the cost of the outsourcing against the net gain or value. The net gain will take into account factors like customer satisfaction, customer retention, increased sales, and reduced in-house staffing costs. Once you’ve decided how you’ll quantify the value you get from outsourcing your customer services, you can then divide that number by the cost of outsourcing.

To ensure accuracy in your ROI calculation, it is important to regularly evaluate customer service metrics and gather data on customer satisfaction, retention rates, and sales figures both before and after outsourcing. This allows for a clear comparison and more informed decision-making regarding the cost-effectiveness of your outsourcing strategy.

Need a more concrete example? Imagine a company spends $50,000 annually on outsourcing their customer service. As a result, they see an increase in sales worth $100,000, improve customer retention by 10%, and save $20,000 in in-house staffing costs. The net gain from these factors can be calculated and compared to the outsourcing cost to determine the ROI. If the net gain is over $50,000 annually, they have a positive ROI. If the net gain is under $50,000 annually, their ROI is negative, and they will likely need to rethink their current arrangement.

What strategies exist for smooth transition to outsourced customer service teams?

For a smooth transition to outsourced customer service teams, businesses should focus on detailed planning, communication, and gradual integration. This process includes defining clear goals, expectations, and metrics for success early on. Effective communication strategies, such as regular meetings and updates, are crucial to aligning both parties and ensuring a unified approach to customer service. Additionally, leveraging technology for seamless integration, like CRM systems, can help in maintaining consistency and quality in customer interactions​

Customer service vs. customer support: What’s the difference?

This list covers customer service outsourcing companies, but some of them also provide customer support services. So what’s the difference between customer service and customer support, exactly? Let’s break it down:

  • Customer service is providing general information and assistance to your broad customer base. It’s about answering FAQs, updating customer information, and receiving customer feedback.
  • Customer support is providing in-depth assistance in regards to specific products or services. It’s about troubleshooting errors and issues, and providing product-specific information.

For example, e-commerce retailers tend to have customer service teams. Customers generally purchase individual products that require limited technical assistance to use. On the other hand, SaaS startups tend to have customer support teams. Their products often require technical setup assistance and other specialized, product-specific support.

Depending on your industry, business model, and the types of products and services you provide, you may require either a customer service team or a customer support team. You might also require both. Be sure to conduct a thorough analysis of your customer interactions to determine whether the majority of queries are general inquiries or product-specific technical issues. This will help you decide whether to prioritize customer service or customer support when choosing an outsourcing company.

What about your customer feedback loop?

As an HR professional, it’s crucial to understand the impact of outsourcing customer service on your customer feedback loop. Outsourcing can reshape this loop in significant ways. Here are some key points—both benefits and drawbacks—to consider:

  • Enhanced Expertise and Efficiency: Outsourcing companies specialize in customer service, bringing expertise and streamlined processes, which often leads to more efficient handling of customer feedback.
  • Access to Advanced Tools and Analytics: These companies usually have access to sophisticated tools for capturing and analyzing customer feedback, providing you with deeper insights.
  • Possible Disconnect with Brand Values: There’s a risk of the outsourced team not being fully aligned with your company’s culture and values, potentially affecting the way feedback is interpreted and acted upon.

For example, a business that outsources its customer service might see a noticeable improvement in response times to customer feedback, but may also face challenges in ensuring the outsourced team fully understands the nuances of their products. It is therefore important to carefully select an outsourcing partner who not only demonstrates efficiency but also shows a commitment to understanding your brand and values.

Note: many customer service providers will include feedback collection in their services. But if not, be sure to have other methods set up for gathering customer insights.

How do companies ensure the confidentiality of customer information when outsourcing?

Ensuring the confidentiality of customer information is a paramount concern for customer service outsourcing. Outsourcing companies implement stringent data protection measures to comply with local and international regulations. They often undergo regular audits and employ advanced cybersecurity tools to safeguard data. Additionally, they ensure that their staff are trained on data protection best practices and are bound by strict confidentiality agreements. While specific measures can vary, the overarching goal is to maintain trust by ensuring that customer data is handled securely and responsibly at all times​.

What's Next?

With customer service and outsourcing on your mind, here are some links to our other top-notch resources written by industry experts on this topic:

Lastly, if you'd like to receive more articles like this one, I recommend signing up for our weekly CX Lead newsletter. We’re always adding new content to help you give your customers a great experience, so check back often to see what’s new!